Stay invested in sugar sector

5931 Investors following Dhampur Sugar. Share this News with them.

0

Like this story, share it with millions of investors on M3

Stay invested in sugar sector

Sajiv Dhawan of JV Capital Services is of the view that one can stay invested in sugar sector.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Your Stocks on CNBC-TV18 Watch the full show » ALSO READ See what other Experts & Brokerages are saying about Dhampur Sugar See messages about Dhampur Sugar Dhampur Sugar BSE | NSE 28/05/12 Are Mutual Funds betting on Dhampur Sugar? Other Stocks in this news Balrampur Chini Mills | Bajaj Hindusthan |

Sajiv Dhawan of JV Capital Services is of the view that one can stay invested in sugar sector.

Dhawan told CNBC-TV18, "This is a sector that we are looking at for last two weeks and we did initiate a bit of buying for clients. The hope was obviously that the government will lift the export ban and stocks moved up today but the government deferred that decision and the immediate reaction was sell off. The problem is that the sector relies an awful lot on fundamental and a lot of control is there by government.It restricts the way these companies can perform and ultimately the fundamentals are going to catch up with any story."

He further added, "It is not an easy story to sell to the market at the current time, there are lot of people who are very bullish on the sector so, the trading momentum is not really there if one is playing for the short-term, I would say the sector as a whole Dhampur Sugar Mills , Bajaj Hindustan , Balrampur Chini Mills they are all delivery buys for investment of 3 to 6 months time frame."

"Hoping that the government does allow some concessions and that the industry can get out of the doldrums that have been for the last 6 months or so. Most of the stocks are quoting at reasonably low prices so a for traders but if one is an investor with slightly high risk appetite then by all means this is a sector to be invested in."

Disclosure: Maybe the sugar sector and some of those stocks our clients would have vested interest in.